April 2016 will bring about changes to how dividends are taxed. Dividends are annual cash payments made to holders of certain shares, which provide a vital source of income to many pensioners that rely on savings in retirement – many pick shares solely based on their dividend payouts. With the new system the current Dividend…
The Estonian Parliament passed the Social Tax, Income Tax and other Acts Amendment Act On 15 June 2015. The Act comes into force in stages. The first amendments come into force on 01.01.2016. The main tax amendments The social tax rate will reduce. The social tax will be 32.5 % instead of the current 33…
Abbreviated accounts for micro companies 1Office UK’s country manager Ivar Veskioja discusses the transposition of the European accounting directive and the recent decision of the European court and explains, what the directive actually changes. The position of Estonia’s last government When criticising the directive, the Estonian government has found that the original aims, reducing the…
The tax system in the United Kingdom is not easy to explain to foreigners. Arguably UK has the longest tax code in the world since 2009. Then international legal research company LexisNexis revealed their finding that the UK tax code has more than doubled in size since 1997, reaching 11,520 pages. The annual changes to…
When does an Estonian company attract tax residency in a foreign country? The exemption from corporate income tax, a special characteristic of Estonia, attracts foreign entrepreneurs to register companies in Estonia. Estonian entrepreneurs in turn are acting more and more actively in foreign countries while trying to retain a minimal tax burden. This is why…
The changes to the Income Tax Act came to force on 1st January Several changes of the Income Tax Act (abbreviated ITA) came to force from January 2015. 1Office brings out the most important changes of the Income Tax Act for entrepreneurs operating in Estonia. The basic exemption of a natural person increased by 120…
The taxation of non-Community goods in Sweden changes in the new year. From 1st January 2015 a company liable to pay VAT in Sweden needs to declare and pay VAT on import goods in the Swedish Tax Agency. According to the order in force so far VAT on import goods was declared and paid in…
From the 1st of January 2015 the new VAT order will begin to apply to B2C electronic services providers due to directive 2008/8/EC of the European Commission. The specified services will start to be taxed in the country where the recipient of the service is located. Which electronic services will taxation change for? The changes…
From the 1st of January 2015 the new VAT order will begin to apply to B2C electronic services providers due to directive 2008/8/EC of the European Commission. The specified services will start to be taxed in the country where the recipient of the service is located. Which electronic services will taxation change for? The changes…
Estonian President Toomas Hendrik Ilves blocked on 18th of December 2013 an amendment to the Estonian Value-added tax act – which would require all transactions greater than 1,000 euros to be declared – on the grounds that it is unconstitutional. Opponents of the amendment, including the Estonian Association of SMEs, say it threatens business secrets,…